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- Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the balance sheet date, MJOs stock was selling for S25 per share. Required: Assuming MJOs dividend yield is 1%, what are the dividends per common share? Assuming MJOs dividend yield is 1% and its dividend payout is 20%, what is MJOs net income?Selected information for Berry Company is as follows: Berrys return on equity rounded to the nearest percentage point is: a. 20%. c. 28%. b. 21%. d. 40%.The Cost of Equity and Flotation Costs Messman Manufacturing will issue common stock to the public for $30. The expected dividend and the growth in dividends are $3.00 per share and 5%, respectively. If the flotation cost is 10% of the issue’s gross proceeds, what is the cost of external equity, re?
- Financial leverage Costco Wholesale Corporation (COST) and Wel-Mart Stroes Inc. (WMT)reported the following data (in milllions) for a recent year: Compute the return on stockholders equity. Round to one decimal place.Item Company V Company U Dividend growth 41.8% 33.3% Dividend Payout 19.6% 31.1% Dividend Coverage (annual period) 5.9 5.4 Current Div. yield 0.3% 1.5% Based on the information above which company has a better dividend performance? Justify your answerWhat is the estimated cost of common equity using the DCF approach given the data below? Price $50 Current dividend $4.19 Constant growth rate 5%
- An analyst has gathered the following information for a Company: Expected earnings per share $9.31 Expected dividends per share $1.96 Expected dividend growth rate 2.00% Required rate of return 5.00% Based on the information provided, the price/earnings ratio of this company is closest to: O A. 33.33 B. 7.02 O C. 20.00Please provide solutions. Thank you! The following information relates to Konbu Corporation for last year: Price earnings ratio = P15 Dividend payout ratio = 30% Earnings per share = P5 What is Konbu's dividend yield ratio for last year?a.1.5%b.2.0%c.4.5%d.10%O'Brien Inc. has the following data: rRf= 5.00% rPM = 6.00% b = 1.10 What is the firm's cost of equity from retained earnings based on the CAPM? a. 11.83% b. 13.22% C. 11.25% d. 8.93% e. 11.60%
- Apply dividend growth model to calculate cost of equity: Current market price $ 100 Dividend $ 6 Dividend growth 4%What is the company's cost of retained earnings? Round your answer to two decimal places. _______ % What is its cost of new common equity? Round your answer to two decimal places. _______ %A Wall Street Journal quotation for a company has the following values: Div: $1.12, PE: 18.3, Close: $37.22. Calculate the approximate dividend payout ratio for the company. Multiple Choice 45 percent 18 percent 55 percent 35 percent
